Tata Motors' Q2 Preview: Company's performance is likely to witness marked improvement

Tata Motors' performance in the September quarter is likely to see a marked improvement on a sequential basis - for both domestic and JLR businesses. On a consolidated basis, revenue is seen at Rs. 49,000 cr vs 65,432 cr, down 25.1% YoY, while loss is expected at Rs. 2300 cr vs loss of 187.7 cr YoY. India business is likely to also report a loss due to subdued CV demand. JLR mix improvement - with higher share of LR & China, and cost-cutting efforts by the management are expected to aid TaMo's Q2FY21 performance.

ET Now poll expects to come in at 7.8% vs 10.8% YoY. For JLR, we expect 32% YoY revenue decline, led by ~39% decline in vols (ex China JV), at £4.3bn, with adjusted margin of 6.5% (driven by strong China & LR mix). Margin loss is likely to come down on stable commodity, operating leverage benefit and cost control. It will be important to watch out for management guidance on demand & inventory situation globally, JLR recovery trends in China and RoW, outlook on capital expenditure and R&D and an update on domestic business turnaround strategy.